Required information

Exercise $9-34$ and $9-35($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Benton Corporation manufactures computer microphones, which come in two models: Standard and Premium. Data for a representative quarter for the two models follow:

Manufacturing overhead in the plant has three main functions: supervision, setup labor, and incoming material inspection. Data on manufacturing overhead for a representative quarter follow:

Exercise $9-34($Algo$)$ Activity$-$Based Costing and Cost Driver Rates $($LO $9-4)$

Required:

a$.$ Benton currently applies overhead on the basis of direct labor cost. What is the predetermined overhead rate for the quarter?

b$.$ The CFO and the plant controller at Benton are thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: direct labor cost for supervision, production runs for setup labor, and direct material dollars for incoming inspection. Data on manufacturing overhead for a representative quarter follow:

Exercise $9-34($Algo$)$ Activity$-$Based Costing and Cost Driver Rates $($LO $9-4)$

Required:

a$.$ Benton currently applies overhead on the basis of direct labor cost. What is the predetermined overhead rate for the quarter?

b$.$ The CFO and the plant controller at Benton are thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: direct labor cost for supervision, production runs for setup labor, and direct material dollars for incoming inspection. Compute the cost driver rates for the proposed system at Benton.

Note: Enter your answers rounded to $2$ decimal places.